I am the landlord and collect monthly rent from my tenant. Last month there are repair cost and my tenant paid directly to the vendor. And deducted the cost from the rent. How should I record this in QB?
Monthly Rent: $4000
Repair Cost for Electrical work: $400
Rent received: $3600
Solved! Go to Solution.
Hi coconests_manager,
I'm here to help you record the rent fee and the repair cost.
We can create an invoice with a service item (for the repair cost). Then, add a credit memo to deduct the repair cost from your tenant's monthly rent. I'll guide you through the steps.
First, let's create an invoice for the rent fee:
Second, let's create a credit memo:
Lastly, let's link the invoice and the credit memo. Here's how:
Furthermore, you can pull up the Transaction List by Customer report to manage all credit memos and invoices. Here's how:
Let me know whenever you have concerns about tracking transactions. All the best!
Hi coconests_manager,
I'm here to help you record the rent fee and the repair cost.
We can create an invoice with a service item (for the repair cost). Then, add a credit memo to deduct the repair cost from your tenant's monthly rent. I'll guide you through the steps.
First, let's create an invoice for the rent fee:
Second, let's create a credit memo:
Lastly, let's link the invoice and the credit memo. Here's how:
Furthermore, you can pull up the Transaction List by Customer report to manage all credit memos and invoices. Here's how:
Let me know whenever you have concerns about tracking transactions. All the best!
Create a service product called "Credit for Electric Repair" or "Tenant Paid Repair Credit" or something similar and select the expense account you would use for any electrical repair under 'Income account'. Then, just add the "Credit for Electric Repair" line item to your tenant's invoice for -$400. That will reduce the amount due from your tenant to $3,600 and book the $400 electrical expense. IMO, it's better to put it on the invoice as a separate line item (instead of a credit memo) so it's easier for everyone to see. Just my $.02.
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